Meme coins are often overlooked. Traditionally, many believe they are too hazardous and speculative for investment. It’s commonly thought that generating profits with them in the long term is nearly impossible.

Before 2025, the notion of including meme coins in a long-term investment strategy would have seemed ridiculous. However, an event in January might have changed the perception in the investment community regarding meme coins.

Meme coins and the Trump administration

The significant event was the unexpected launch of a meme coin by President Donald Trump. This occurred on the night of January 17, just days ahead of the inauguration, without any prior announcement. When people awoke the next morning, there was uncertainty over whether this was a legitimate meme coin or not.

Despite the chaos on social media, the Official Trump meme coin (ticker: $TRUMP) surged to a value of $10 billion within two days. This was soon followed by a Melania Trump meme coin, which reached a valuation of $1.5 billion.

Even after a considerable price decline, the Trump meme coin is currently the 25th-largest cryptocurrency globally, with a hefty valuation of $6.5 billion. At present, only Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) boast higher valuations.

Innovative approaches to meme coin investment

There are numerous ways to engage with the meme coin craze without directly investing in specific meme coins. For instance, you could consider investing in Layer-1 blockchains like Solana (CRYPTO: SOL), where meme coins are actively created and traded. The Trump meme coin was launched on Solana, which has emerged as the go-to blockchain for meme coins.

In the past year, activities on Solana have surged. New user metrics and overall transaction activities have increased year-on-year. Notably, the 24-hour trading volume on Solana has surpassed that of Ethereum (CRYPTO: ETH).

This trend can be attributed to the fact that purchasing and trading Solana meme coins necessitates using a decentralized cryptocurrency exchange on the Solana blockchain. Consequently, investors need to acquire some Solana tokens to trade these meme coins, which bodes well for Solana’s long-term growth. It indicates more users, heightened activity, and increased revenue for the Solana blockchain ecosystem’s participants.

Of course, there are alternative strategies for investors. You might explore novel artificial intelligence (AI) tools designed specifically for meme coin trading. With so many options in the meme coin market, finding the best investment can feel like searching for a needle in a haystack. Allowing an AI to navigate this landscape could save you significant time and effort.

At some point in the future, we may even see exchange-traded funds (ETFs) that include meme coin assets. Picture a new dog-themed ETF exclusively holding meme coins like Dogecoin, Shiba Inu, Bonk (CRYPTO: BONK), dogwifhat (CRYPTO: WIF), and Floki (CRYPTO: FLOKI). These coins are all within the Top 75 cryptocurrencies worldwide. Such a fund would enable you to diversify the risks associated with holding individual meme coins.

Investing in meme coins for the future?

The surge of meme coins stems from several factors: the rise of populist sentiment, the widening gap between affluent and less fortunate groups, the influence of social media and online meme culture, and a growing societal anxiety among youth regarding their economic prospects compared to their parents.

These elements are drawing investors towards meme coins. The rationale is straightforward: With the threat of AI taking over jobs, and the diminishing allure of the American Dream, alternatives are limited. While meme coins carry risks and uncertainty, they also come with the potential for immense returns—100x or even 1,000x.

This doesn’t imply that everyone should invest in meme coins. Data continues to reveal that approximately 99% of investors face losses when investing in them.

However, if you choose to participate, it’s wise to find ways to minimize risk where possible. Explore indirect investment avenues in meme coins instead of direct ones. Most importantly, keep in mind that meme coins were initially intended for entertainment, not serious investment opportunities.

Dominic Basulto holds positions in Ethereum and Solana. The Motley Fool has investments in and recommends Ethereum and Solana. For disclosures, please refer to the Motley Fool’s policy.

The Motley Fool collaborates with News to provide financial news, analysis, and insights aimed at empowering individuals to take control of their financial destiny. Their content is independently created.

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